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Figure 1 Military Metals Corp. (CSE:MILI; OTC:MILIF):

Compared to its closet peer, Military Metals ( CSE: MILI , OTCQB: MILIF ) appears to be significantly undervalued. Fellow antimony miner Perpetua Resources has only a slightly larger antimony resource of 90,000 tons but has seen its value soar to around $700 million. Perpetua saw a huge rise from $3 a share to $14 a share in the last 6 months.

Meanwhile, Military Metals is valued at only $25 million right now; yet its historical resource of 60,998 tons has an in situ value of over $2 billion of antimony in the ground.

Across the Atlantic, in Canada, Military Metals is sitting on a recently acquired historical antimony/gold play that ended up being a major boom to the Allies in WWI, and reigns supreme as one of Canada’s biggest past producing Antimony mine in the early 1900’s. And on October 24th, 2024, the company pounced on another opportunity to further consolidate this territory by signing an LOI to acquire more claims flanking West Gore.

It's an impressive historical resource, with historical drilling results demonstrating over 7 meters of 10.6 gpt gold and 3.4% antimony .

The move to consolidate territory surrounding West Gore—one of the biggest heroes of WWI—is a strategic move that could tie the junior miner directly to North American defense at a time when prices are skyrocketing.

Everyone’s on War Footing, and Antimony is the Driver

When China started tightening the noose first on critical battery metal graphite, then on rare earth elements Germanium and Gallium, and finally on Antimony, Military Metals Corp. banded together to make the metals that China refuses to sell their primary business.

This smart, fast-moving investment strategy could, according to Forbes , be the “latest to generate short-term profits of more than 100% on money invested”.

Military Metals CEO Scott Eldridge sees a major antimony supply crunch coming. And antimony prices this year, along with new Chinese restrictions add extra support to that prediction with prices doubling since earlier this year from $12,000 per ton to $38,000 .  That’s why it’s been acquiring past-producing antimony mines on two continents at breakneck speed.

They’re eyeing a confluence of events, one of which is a major U.S. and European Army push to boost production of ammunition that relies on antimony.

Artillery shells are the kings of battle, and the king of kings is the 155-millimeter artillery shell. Now, the U.S. Army has set in motion a major push to ramp up production, gearing up for the opening of a new manufacturing facility in Mesquite, Texas . A second facility in Canada has been contracted to produce shells for the U.S. Overall, the U.S. Army is hoping to ramp up production from the current ~40,000 artillery shells per month, to 100,000 by the New Year .

That means they will need to secure a lot more antimony supply, at the same time that China is putting the squeeze on the critical mineral.

Other companies to watch:

Century Aluminum Company ( NASDAQ: CENX )

Century Aluminum Company is a leading producer of primary aluminum in the United States and Iceland. With a focus on operational excellence and sustainability, they own and operate aluminum smelters that produce high-quality aluminum products for a variety of industries, including transportation, packaging, building and construction, and electrical. Century Aluminum is committed to responsible aluminum production, implementing measures to minimize their environmental impact and support the communities where they operate. This includes investing in energy-efficient technologies, reducing greenhouse gas emissions, and promoting recycling and resource conservation.

Aluminum is a versatile and essential metal with a wide range of applications in modern society. Its lightweight, durable, and recyclable properties make it a crucial material for various industries. Century Aluminum's production contributes to the global supply of this important metal, supporting economic growth and technological advancements. As the world transitions towards a more sustainable future, the demand for aluminum is expected to increase due to its use in lightweight vehicles, renewable energy infrastructure, and sustainable packaging solutions.

Century Aluminum's commitment to responsible production practices aligns with the growing global focus on environmental stewardship and sustainable resource management. By prioritizing energy efficiency, reducing emissions, and promoting recycling, Century Aluminum is contributing to a more sustainable aluminum industry. Their focus on operational excellence and sustainability positions them as a key player in meeting the growing global demand for aluminum while minimizing their environmental footprint.

Pan American Silver Corp. ( NYSE: PAAS )

Pan American Silver is a leading precious metals mining company with a primary focus on silver production. They have a significant presence in the Americas, owning and operating mines across diverse regions, including Mexico, Peru, Bolivia, Argentina, and Canada. This geographically diversified portfolio is a strategic advantage, helping to mitigate risks associated with political instability or resource nationalism in any single country. It also ensures a stable and reliable supply of silver, a crucial material with a wide range of applications.

Silver is not just a precious metal; it's an essential industrial component used in electronics, solar panels, medical devices, and various other technologies. Pan American Silver's production contributes to the global supply of this versatile metal, supporting key industries and technological advancements. Furthermore, the company is committed to responsible mining practices, implementing measures to minimize their environmental impact and support the communities where they operate.

This commitment to sustainability includes initiatives to reduce water and energy consumption, protect biodiversity, and engage with local stakeholders. By prioritizing environmental stewardship and social responsibility, Pan American Silver aligns with the growing global focus on ethical sourcing and responsible resource management. This dedication to sustainability is not only good for the planet and local communities but also enhances the company's reputation and long-term value.

Commercial Metals Company ( NYSE: CMC )

Commercial Metals Company is a global leader in the steel and metal recycling industry. They operate across the entire steel value chain, from manufacturing and recycling to marketing and distributing steel and metal products. This integrated approach allows them to serve a diverse range of markets, including construction, infrastructure, and manufacturing. Commercial Metals Company plays a crucial role in the circular economy, promoting sustainability and resource efficiency.

One of their key strengths is their focus on recycling. By collecting and processing scrap metal, they reduce the need for virgin materials, conserving natural resources and minimizing waste. This commitment to recycling not only benefits the environment but also contributes to cost savings and operational efficiency. Commercial Metals Company operates numerous recycling facilities globally, ensuring a steady supply of raw materials for their steel mills.

Through their sustainable practices and commitment to innovation, Commercial Metals Company is helping to shape a more responsible and environmentally conscious steel industry. Their efforts contribute to reducing greenhouse gas emissions, conserving resources, and supporting a circular economy, making them a valuable partner for industries seeking sustainable steel solutions.

Franco-Nevada Corporation ( NYSE: FNV )

Franco-Nevada is a unique player in the gold mining industry. Unlike traditional mining companies that own and operate mines, Franco-Nevada is a royalty and streaming company. This means they provide financing to mining companies in exchange for royalties or streams on the gold and other metals produced. This business model offers several advantages, including lower operating costs, greater diversification, and reduced exposure to operational risks.

Franco-Nevada's portfolio includes a diverse range of mining assets across the globe, generating revenue from various gold mines without the direct responsibility of managing those operations. This allows them to focus on their core expertise: identifying and investing in high-quality mining projects. Their strong track record and disciplined investment approach have made them a trusted partner for mining companies seeking financing.

With a primary focus on gold, Franco-Nevada offers investors a unique way to gain exposure to the precious metals market. Their royalty and streaming model provides leverage to gold prices while mitigating some of the risks associated with traditional mining investments. This makes them an attractive option for investors seeking exposure to the gold sector with a focus on financial returns and portfolio diversification.

First Majestic Silver Corp. ( NYSE: AG )

First Majestic Silver Corp. is a leading silver mining company with a strong focus on production in Mexico. They own and operate several silver mines in the country, making them a significant player in the Mexican silver industry. The company is committed to responsible mining practices, implementing measures to minimize their environmental impact and support the communities where they operate. This includes initiatives to reduce water and energy consumption, protect biodiversity, and engage with local stakeholders.

First Majestic Silver's primary focus on silver production makes them a key player in the global silver market. Silver is not only a precious metal but also an essential industrial component used in a wide range of applications, including electronics, solar panels, and medical devices. As technology advances and the demand for silver in various industries continues to grow, First Majestic Silver is well-positioned to meet this increasing need.

Furthermore, the company's commitment to responsible mining practices aligns with the growing global emphasis on ethical sourcing and sustainable resource management. By prioritizing environmental stewardship and social responsibility, First Majestic Silver aims to create long-term value for its stakeholders while minimizing its environmental footprint. This dedication to sustainability is crucial for the long-term viability of the mining industry and its role in providing essential resources for a growing global economy.

By. Michael Scott

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Forward-Looking Statements

This publication contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. The forward-looking statements in this publication are based on current expectations and assumptions about future events, geopolitical developments, trade policies, market conditions, the company’s strategic initiatives to address the critical shortage of antimony, and current expectations, estimates, and projections about the industry and markets in which the company operates.  Factors that could change or prevent these statements from coming to fruition include, but are not limited to, the potential impact of the upcoming U.S. elections on various industries and specific companies, changes in government policies, market conditions, regulatory developments, geopolitical events and the company’s ability to successfully acquire and develop new antimony resources and fluctuations in antimony prices. The forward-looking information contained herein is given as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.

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